The US dollar was generally stronger -vs- the majors in cautious trade as it recouped some of its overnight losses. The Japanese equity market, which apparently was the catalyst for the sell-off, was relatively steady and that emboldened traders to put a little bit of risk back on the table. If this rally continues then yesterday's decline will be viewed in retrospect as a much needed correction. USD/JPY breached 102 and made session highs at 102.61 before relapsing a bit while AUD/USD and NZD/USD broke back below 0.97 and 0.81 respectively. Looking at it from a macro perspective the divergence in monetary policies leads one to believe that the dollar should continue to exhibit strength, especially -vs- the Japanese unit, but yesterday's frenetic decline suggests that the journey might be a bit more treacherous than it has been so far.